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The Big Read in short: Businesses ride the sustainability wave

SINGAPORE — When Ms Karen Cheah was pursuing her masters in innovation at the Singapore Management University in 2019, her pitch about a sustainable food packaging solution “generated significant interest” among some venture capitalists who were listening to her presentation.

Alterpacks founder Karen Cheah said one of the firm’s goals is to make a product that can perform as well as, if not better than, traditional plastic containers.

Alterpacks founder Karen Cheah said one of the firm’s goals is to make a product that can perform as well as, if not better than, traditional plastic containers.

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This article was written in partnership with Enterprise Singapore. 

Each week, TODAY’s long-running Big Read series delves into the trends and issues that matter. This week, we look at how Singapore firms are riding sustainability wave across the value chain. This is a shortened version of the full feature,​ which can be found here.

  • More companies here are looking to create environmentally sustainable products and solutions
  • There are also firms which are reinventing their production process to become more environmentally sustainable
  • While these firms said that their costs have risen as a result, they regard the expenditure as worthwhile investment to ensure that their firms are ready for regulatory changes in the future
  • Experts say that as environmental regulations change, there will be greater demand for green solutions, so firms should hop on the bandwagon sooner rather than later 
  • The Government is also stepping in to help these firms, with grants provided by Enterprise Singapore, for instance, for firms to be certified as environmentally sustainable

SINGAPORE — When Ms Karen Cheah was pursuing her masters in innovation at the Singapore Management University in 2019, her pitch about a sustainable food packaging solution “generated significant interest” among some venture capitalists who were listening to her presentation.

While they did not invest in her solution, which was part of a class project, they told her that it had the potential to solve the global problem of single-use plastic packaging.

Wasting no time, Ms Cheah, a former media executive, immediately embarked on her business idea in the same year, founding the start-up Alterpacks.

“The mission of Alterpacks is to use what is being thrown out to create food containers that would be a replacement to plastic disposables,” said Ms Cheah, who is in her 40s. 

This was done through recycling waste, such as spent grains and agricultural waste, to create packaging that is biodegradable.

She first started by hiring a biomaterial researcher with money out of her own pocket, and used a room in her house as a makeshift laboratory to experiment with the materials needed to create her final product.

From those humble beginnings, Alterpacks eventually caught the eye of industry players and received support from the likes of Temasek Foundation and Enterprise Singapore (EnterpriseSG). 

With their backing, Alterpacks was able to commercialise its product at the end of last year.

Ms Cheah said one of the firm’s goals is to make a product that can perform as well as, if not better than, traditional plastic containers.

Alterpacks containers are made entirely of organic waste, are safe for contact with food, able to hold soups and oily foods, and can be stored in the freezer or microwaved.

Although plastic containers are about 30 per cent cheaper to make than her alternative, Ms Cheah hopes that this will change in due time.

“With sufficient volume, we aim to get the price of the containers to compete with plastics,” she said. “We are still playing catch-up with a plastics industry that has a 100-year head-start.”

Alterpacks is not the only business that has embarked on an environmental sustainability journey.

In fact, many firms are vying to be part of an expanding ecosystem of environmentally sustainable initiatives in Singapore.

WHY IT MATTERS 

Singapore’s growing sustainability agenda is one that has developed not only organically, but is also due to a sustained push by the Government to nudge firms towards going green.

This is most evident in Singapore’s Green Plan 2030, announced in 2021, which aims to strengthen the country’s economic, climate and resource resilience, as well as improve the living environment of Singaporeans, among other goals.

Industry observers and firms told TODAY that in recent years, they have seen companies, investors, and the Government coming together to ensure that green initiatives take off here.

While companies may incur higher costs in the short term, these initial investments in greener products would likely pay off in the future.

On top of that, there is also a growing demand for auditing and consultancy services here, as more and more businesses require the relevant expertise and know-how in their bid to go green. 

Providers of these services comprise both Singaporean consultancies, and international consultancies which have set up shop here in view of the opportunities available in Singapore and the region. 

The range of firms jumping onto the green bandwagon has created a budding ecosystem, which will further help existing and new firms ride the sustainability wave. 

And while these firms said that their costs have risen due to their own green initiatives, they regard the expenditure as a worthwhile investment to ensure that their firms are ready for regulatory changes in the future.

In fact, business and environmental experts told TODAY that it is not only advisable, but in fact crucial, that firms begin to plan how they want to go green in anticipation of changes to customer and investor preferences, as well as government regulations. 

“With all these movements going on, if you’re a business and you are numb to all these changes, it’s a disservice to your own basic survival,” said Professor Lawrence Loh, director of the centre of governance and sustainability at National University of Singapore (NUS) Business School. 

“Sustainability has moved from just being a possibility to a necessity.”

THE BIG PICTURE

To Prof Loh, Singapore is a “powerful launchpad for sustainability as the broader ecosystem is honed to adopt sustainable innovations and practices”. This ecosystem is aligned by larger thrusts such as the Singapore Green Plan, which ensures “everyone is on the same page”, he added. 

However, while it seems like a foregone conclusion that all sectors of the economy needs embrace sustainability, Dr Sumit Agarwal, a professor at NUS Business School, said that not all industries will move towards a greener future at the same pace.

There is also a growing demand for auditing and consultancy services here, as more and more businesses require the relevant expertise and know-how in their bid to go green.

Industries that are highly reliant on fossil fuels will take “a significantly longer time” to convert to more renewable energy sources, he said.

Also, a broad sector such as transport will take time to innovate and convert, as there are too many “entrenched interests” within it.

THE BOTTOMLINE 

The experts concurred that companies which are still hesitant to move towards a more sustainable future are in danger of being left behind. 

Ms Melissa Low, a research fellow with the Centre for Nature-based Climate Solutions at NUS, said that while companies may incur higher costs in the short term, these initial investments in greener products would likely pay off in the future.

“Most or a large number of companies out there that go green, they experience better reputation, are more credible, and as they care about the environment, they might expand their audience and consumer base, with more young people buying from them,” she said.

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